Do you think XRP is undervalued compared to other risks assets?
It could well be. RippleXity reports that whales recently acquired 380 millions XRP. The buying was concentrated at the $1 psychological threshold. XRP also has closed over $1 for the longest time, 632 days. This adds weight to this whale story.
The technicals also seem to be confirming this. On the daily charts, XRP’s RSI hovers at the neutral level of 50. Nearly everything else already looks overbought. Bitcoin [BTC]Ethereum [ETH]Solana [SOL]BNB and BNB have all reached overbought territory or are in a bullish trend. XRP sits at around 50 and is largely ignored.
The growing signals of bullishness around Ripple [XRP] As you gain weight, your body will begin to feel it.
A second key configuration also aligns itself with the timing. The 24H heatmap of CoinGlass shows that XRP’s liquidity has been firmly clustered around $1.06 – $1.07 throughout the entire week. This is despite the drop in price to $1.00. RSI appears neutral. Whale accumulation is picking up.
It’s not just the tech. The fact that XRP is a Layer 1 system could help to further support the case of undervaluation. This raises the question: Can these flows make the squeeze a fully-fledged parabolic move? Could they bring $1.15 into focus again as XRP’s goal for August?
XRP Bullish Signals Strengthen as Liquidity Builds
This cycle, liquidity will be the key driver for Ripple.
The timing is important. Aviva Investors just tokenized A fund is available on XRPL. A tokenized class of shares is now available for its USD Liquidity Fund. It’s yet another sign of institutional capital flowing deeper into the XRPL Ecosystem. The impact of this is evident: the RWA asset price on XRPL has increased by more than 28 percent over the last 30 days. This indicates that tokenized assets are gaining traction.
Here is when the liquidity background starts to become important. According to the graph below, the total stablecoins market cap for XRPL increased by more than 12% over the last 24 hour, adding $100 million of net flows. It is now close to reaching the $1 billion market cap. If this liquidity builds, it may become a key catalyst for XRP when the broader market returns to risk.
This is a significant development that further supports the case of XRP’s undervaluation.
The logic behind this is that XRP has seen strong growth in terms of fundamentals and capital flow, but its technicals haven’t caught up yet. The neutral RSI of XRP stands out in comparison to the majority of altcoins, which are already showing signs that they’re stretched.
During the same period, the whale accumulation has increased, which suggests that the market might finally start to fill in the gaps. If this pattern continues, XRP might be heading for a squeeze and a return to $1.15 sooner than expected.
Final Summary
- The combination of rising liquidity, neutral RSI (relative strength index), and whale buying suggests that XRP may be poised for a larger move.
- Stablecoin growth and increased stablecoin flow could drive the short squeeze towards $1.15.
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Source: ambcrypto.com
